Sue Sells a Futures Contract for U

question 88

Multiple Choice

Sue sells a futures contract for U.S. Treasury bonds and on the settlement date the interest rate on U.S. Treasury bonds is lower than Sue expected. Sue will have:

• A) lost money on her short position.
• B) gained money on her long position.
• C) gained money on her short position.
• D) lost money on her long position.

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Definitions:

Inventory

The total amount of goods or materials contained in a store or factory at any given time.

JIT Systems

JIT, or Just-In-Time Systems, refer to an inventory management strategy aiming to decrease waste and increase efficiency by receiving goods only as they are needed in the production process.

Job Specialization

The process of focusing one's occupational concentration on a specific area of expertise, increasing efficiency and proficiency in that area.

Lean Operations

A structured strategy for decreasing waste in manufacturing processes without compromising on efficiency.